Editor’s Note: This story has been updated to clarify that Ford flew the car for Jim Farley from Shanghai to Chicago.
Ford Motor Co. F CEO Jim Farley has expressed his admiration for the Xiaomi Corp. XIACF Speed Ultra 7, a vehicle he has been driving for the past six months.
What Happened: During an appearance on “The Fully Charged Podcast” with Robert Llewellyn, Farley shared his reluctance to part with the car, which Ford flew for him from Shanghai to Chicago. He praised its performance and market success, noting, “They sell 10,000, 20,000 a month. They’re sold out for six months,” as reported by Business Insider on Wednesday.
Despite the Xiaomi SU7’s popularity, the company faces financial hurdles. In its second-quarter earnings report, Xiaomi revealed an adjusted loss of $252 million from its EV division, equating to a loss of approximately $9,200 per unit for the 27,307 SU7s shipped during the period.
A Xiaomi spokesperson mentioned efforts to cut production costs by scaling operations, emphasizing the significant investment in Xiaomi’s first EV, a pure electric sedan, which requires time to offset costs.
Why It Matters: The admiration from Farley comes at a time when the U.S. is considering a ban on Chinese-made vehicles with key communications and automated driving systems due to national security concerns.
The U.S. Commerce Department’s proposal could potentially exclude nearly all Chinese cars from the American market, escalating tensions between the two nations.
Meanwhile, Xiaomi has made significant strides in the EV market. The company launched its first EV, the SU7 sedan, in late March and began deliveries in April.
By the end of the second quarter, Xiaomi had delivered over 27,000 units, closely trailing Chinese EV startup XPeng, which delivered 30,207 vehicles. Xiaomi generated revenue of 6.2 billion yuan ($0.87 billion) from its EV business in the quarter.
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Photo courtesy: Anan Ashraf, Benzinga
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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